Managing risks counts, says insurance CEO
Some companies are not performing as well as they should because of an insufficient focus on risk management.
That’s the view of Gregory Rose, chief executive officer of Lynch Insurance Brokers, one of Barbados’ oldest companies.
“One of the greatest challenges facing our customers today is risk . . . business success is determined by how you embrace or manage risk, unfortunately most of us are going about it completely wrong,” he said last Tuesday as the 154 year-old company officially opened a new office in Sky Mall, Haggatt Hall, St Michael.
Rose said the problem was that “a holistic approach to risk is not on the average board or management’s agenda”.
“Many finance officers believe their role is to try and cut insurance costs and carve some semblance of a profit, the human resource manager is somewhere trying to make sure they comply with the employment rights legislation, health and safety officers are hoping the budget for that protective equipment will get approved and the operations officer is trying to deal with a strike in Miami delaying their shipment,” he noted.
“Everyone is in their silo dealing with what they perceive is an important challenge, all of which are potentially costing the company time and money. But which is important? Which risks have the most potential to impede success? Where should a company allocate its time and resources?”
Rose said these questions and others required answers, adding that the concept of managing risks “extends beyond what is insurable and as such the value of what the traditional broker brings to the table is miniscule in the grand scheme of risk”.
“This factor has been the driving force behind our firms’ evolution from solely an insurance brokerage into a multifaceted risk advisory firm that will provide our customers with peace of mind in the knowledge that we can solve the broad array of risks which you face.
“Lynch’s role is helping you our customers, businesses and families that represent our community [to] understand the risks, measure the risks and take informed steps to solve these for the stability of our nation. Today Lynch is the only trusted risk advisor that can provide a cohesive risk management plan across the entire spectrum of business risk,” he boasted.
Rose said the new office came at a turning point for the company as it strengthened its new focus on risk management in addition to introducing “a number of new strategic initiatives to launch new products and services that support better risk management in our community”. (SC)